Solvay's share price fell by almost 28% on Monday, after the chemical group completed the demerger of its most dynamic activities into a new, autonomous entity called Syensqo, which is also soaring on the stock market.

This strategic transformation is intended to position Solvay as a world leader in essential chemicals, in areas such as air and water purification, clothing, car tires and thermal insulation.

Syensqo, for its part, has inherited growth activities in batteries, green hydrogen, thermoplastic composites, renewable materials and biotechnologies.

While the former subsidiary is aiming for a current operating margin (Ebitda) of around 25% by 2028, Solvay's margin should be around 15% by the same date.

The head of the former Solvay, Ilham Kadri, will head up Syensqo, 'which shows the interest of one structure over the other', according to analysts at Invest Securities.

The remainder of the Solvay group, which employs over 9,000 people in 40 countries, will be headed by Philippe Kehren, CEO, while Pierre Gurdjian will be Chairman of the Board.

At current levels, its market capitalization stands at around 2.2 billion euros, compared with a valuation of over 9.8 billion euros for Syensqo, which posted a 12% gain on its stock market debut.

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